AgroCapital

Name of client: USAID
Detailed description of project:
AgroCpaital program’s mission was to boost economic growth in Albanian Agriculture through access to capital and technical support. CBS worked closely with banks and Financial Institutions to improve their internal products and farmers and agribusinesses to strengthen their business operations. CBS built and maintained LORES, an innovative software application connecting demand for agro loans with banks and financial institutions. AgroCapital developed programs, products and delivered technical assistance to key FI’s including eight largest banks and MFI’s: BKT, Raiffeisen, ProCredit, Intesa, Sanpaolo Bank, Credins, Societe Generale and two micro finance institutions: NOA and ASC Union. The programs interventions were attributable for a total financing of $15Mill and increase the capital investments by $18.5million. The value of sales for enterprises would be increased by $28 million of new income generation, benefiting over 200 businesses and generating 1,150 new jobs.

Type and scope of services provided:
The programme goals are implemented through three distinct components:

COMPONENT 1: Advisory Services to Banks & FI’s Serving Farmers and agribusinesses

• Consultancy services to five largest Banks in Albania and two MFIs to support revenue growth through financial advisory and technical consultancy for agriculture business development;
• Launch Professional Loan Referral Program through a tracking Electronic Loan Referral System (LORES) to connect referral agents with partner banks; LORES is the first solution of its kind in Albania which brings together under a common platform agriculture and banking sector;
• Provide Technical Assistance to Financial Institutions with external capital instruments such as IPARD scheme, Sared Grants, AZHBR loans, AGFCredit Guarantees etc;
• Development an Agriculture Credit Scoring model to be used by banks for automatic processing of loan applications;
• Launch of Agriculture Leasing. Provide TA to Albania Leasing to design and implement Agro Leasing products tailored to agribusiness specifics;
• Comprehensive consulting services to ASC Union, a micro finance institution by developing its 2015 – 2020 Strategy document which outline a path for creation of its first agro rural bank in Albania.

COMPONENT 2: Provide Business Strengthening and Technical Assistance Services to FAB’s by Improving Their Competitiveness and Increasing Their Ability to Absorb Capital

• Assist Farmers and Agribusinesses with application package preparation and facilitate access to banks and alternative sources of capital to finance their investments;
• Provide agribusiness with 360° advisory services and advanced business plans to facilitate economic growth;
• Support Albanian niche products by providing Technical Assistance. Work closely with select groups of farmers, associations and processors to introduce a value chain business model with more sophisticated production techniques
• Support modernization of Albanian Agriculture by determine the right Technologies for the investments;
• Build Capacity for Sales support for FAB’s assisting FAB‟s with a variety of marketing techniques and domestic market chain linkages

COMPONENT 3: Development of the Online information platform to become the “Information Hub” for Agriculture

• The program launched Agroweb.org, a bi-lingual information web platform considered now the homepage of agriculture and environment in Albania.